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Investors Eye Higher Rally as Profit-Taking Ratio Hits 11:1 – Crypto News

Published

1 year ago

May 24, 2024

Dripp

Chainlink Price Analysis: This week witnessed a roller coaster in inverters sentiment as early week recovery spurred by Ethereum because development in spot ETF is now countered by Bitcoin correction. The BTC falling for four consecutive days reached $67000, limiting the recovery for several altcoins. However, the Chainlink (LINK) coin shows notable resilience to the market correction as it jumped 4% today to form a reversal candle pattern— morning star at $16 support.

Also Read: What Will be My Portfolio If ChainLink(LINK) Price Hits $50?

Chainlink Price Analysis: On-Chain Data Shows Highest Profit-Taking Ratio Since 2022

BINANCE:LINKUSDT Chart — Chainlink Price Analysis| Tradingview

Chainlink’s current rally began in mid-May when the price rebounded from the monthly support level of $12.8. This renewed momentum propelled the asset upwards by 34.2%, bringing its trading price to $17.23.

On May 16th, the rally broke through a downsloping trendline, ending a 2-month correction trend. Currently, the LINK price is stabilizing above the $16 flipped support level, even as Bitcoin initiates a new correction trend.

The formation of a bullish reversal called pattern— Morning start at $16 highlights the buyers defending this support to aim for a higher target.

According to Santiment, a crypto analytics firm, the on-chain data reveals that for every 1 LINK transaction at a loss, there are 11 transactions in profit.

🔗📈 #Chainlink has climbed well ahead of the #crypto pack, quickly surpassing $17.50 for the first time in 6 weeks. #Onchain today, there are 11 transactions in profit for every 1 $LINK transaction at a loss. This is the highest ratio since Dec. 8, 2022. https://t.co/nILlWsXWNh pic.twitter.com/joMV55V5x7

— Santiment (@santimentfeed) May 24, 2024

This 11:1 ratio is the highest profit-taking ratio since December 8, 2022, indicating a strong bullish sentiment among LINK investors. This data suggests that many participants are capitalizing on profit opportunities at higher price levels, reflecting robust market confidence.

Thus a potential reversal from $16 may bolster LINK price to target $18.67, followed by $20.7.

Technical Indicator:

Exponential Moving Average: A potential bullish crossover between the 20-and-50-day EMA could accelerate the buying pressure in the LINK price
Average Directional Index: The uptick in ADX (26%) slope with today’s price jump hints the buyers hold sufficient momentum to prolong the current recovery trend.

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